ado product and potential

My fellow investors,
after reading the numerous amount of posts in regards to technical investing and the various information on projected NPVs and valuations, i thought that the most important aspect in Bio-tech firms is neglected here - and that is the product.

Now, i must admit that my knowledge about chemistry (and the likes of it) is quite limited but i thought i take the time to really delve into the presentation and the various bits of information that the company has already dispensed for the last couple of months.

Here we go......

Product - Mix&Go: It basically captures and orients proteins to maintain their functional state on the surface of synthetic materials (i.e. it is basically a surface coating) ensuring in faster development and improved performance for immunoassays.

BD - Now ADO has seperated their business development initiatives into 4 different (but not seperate segments) to sell their ready-made products (i.e. there is no additional development needed for Mix&Go). Briefly, they are going to either provide the technology for huge multinational suppliers to coat their products ("beads") and sell to labs and research organisations OR to the bead manufacturers themselves OR ADO will coat the beads and on-sell to research organisations, POS etc.

Comments - One needs to realise here that ADO is dealing with some heavy hitters in the Pharma Industry - Roche, Siemens, Abbott, Ortho, Beckman, Diasorin etc (all multi Billion dollar firms that are recognised in the global health market). Additionally, in the current economic climate and due to the improved performance and COST EFFECTIVENESS of the Mix&Go system, these firms will definitely be touching base with ADO. I am not even going to touch on their other system - Mix&Select that will probably come online soon if not already.

Agreements - Further, the fact that they have already secured Bangs (the leading Beads manufacturer) and are in talks with Merck, Dynal, Seradyn for their licensing agreements bodes really well for the future of this company. Decreased manufacturing costs is another huge competitive advantage. This is not adding the fact of the numerous research organisations that might take this on board directly instead of purchasing from the pathology suppliers.

Cashflow - Though their revenue streams and royalty rates are significantly higher in certain areas (i.e. sale to Bead manufacturers and Research organisations), their ability to license this product to the huge pathology suppliers will really sent their share price into orbit. Royalty on resultant sales for Pathology suppliers though at 1% - 3% might be considered nominal BUT not when it is a 6-7 BILLION dollar industry annually. ADO doesnt even have a significant competitor in their market as they are at the forefront of this particular industry and have secured the intellectual property behind the systems.

One additional point (and a significant one i might add) is that they have signed non-disclosure agreements with 6 out of the top 10 pathology suppliers (you can rest assure that these are the firms that they had mentioned in the presentation - being Roche, Siemens, Abbott, Ortho, Beckman, Diasorin etc). There is definitely many more agreements to come on board.

Though i note that some have argued and debated on the recent price rise and the validity of this (attributing it to moving averages, fibs etc), it would also be helpful if one researched the products in question. I have observed many bio-tech firms get neglected on the wayside due to a lack of understanding and to see the share price surge 3000% upwards.

Please understand that the Mix&Go system is different in that it is used as a coating and not a seperate drug itself...It is something like the sugar in coffee. The sugar is a necessity for most but one has always a favorite coffee blend.

In this case, ADO markets the sugar.